Week in Review Archive

Despite higher interest rates, the Canadian economy is exceeding expectations and has dodged the predicted 2023 recession. Real GDP at basic prices grew 0.6% in January (7.4% annualized), and preliminary estimates pointed to 0.4% growth in February (4.9% annualized). This suggests that growth in the first quarter of 2024 is on track for around 3.5%, according to data from Statistics Canada.

The outlook for Asia and the Pacific in 2024 has brightened: we now expect that the region’s economy will slow less than we previously projected as inflation pressures continue to dissipate.

Economic growth in France is less than expected for this year with weaker consumer spending and investments, according to the central bank’s recent forecast. The European Commission cut its 2024 GDP growth forecast from 1.2% to 0.9%—as French manufacturing worsened toward the year-end of 2023.

A general election held in July 2023 resulted in a significant seat gain for the main opposition PP and fewer losses than expected for the member parties of the incumbent minority government headed by Prime Minister Pedro Sánchez. However, neither the center-right PP nor Sánchez’s center-left PSOE won enough seats to claim a majority and a lack of parliamentary allies doomed PP leader Alberto Feijóo’s efforts to secure confirmation of a minority government to failure.

Javier Milei, a self-described “anarcho-capitalist,” campaigned for the presidency on a platform that featured pledges to slash state spending, shrink the government, dismantle regulatory constraints on the private sector, and wage war against a corrupt political “caste” that had mismanaged Argentina into a seemingly endless series of economic crises.

Germany’s GDP growth expectations for 2024 are expected to grow only 0.1%, down from a previous estimate of 1.3% as the country is stuck in “tricky waters,” according to German Economy Minister Robert Habeck.

Expanding your business internationally can enhance reach, access new markets and boost profits. However, it also presents challenges like language barriers and unfamiliar legal systems. Despite these risks, the benefits make international business expansion appealing for growth-seeking organizations.

After a tumultuous election period, the Pakistani government now must deal with fallout from the country’s mount of foreign debt. The State Bank of Pakistan estimated its debt to be $124.5 billion and 42% of GDP. Though this is not extremely high based on international standards, Pakistan’s annual foreign exchange earnings through exports show that they are not enough to pay for imports.